Lindsay Hackett v The Commissioners for HMRC

Facts

Mr Lindsay Hackett was at all material times the sole director of Intekx Ltd, a company trading in electronic goods. In earlier litigation, Intekx Ltd v HMRC [2014] UKFTT 277 (TC), the Tribunal found that Intekx had known that its 2006 mobile telephone deals were connected with fraudulent VAT evasion, and that Mr Hackett was fully aware of Notice 726 and an unreliable witness. This appeal concerned 99 later transactions, between June 2009 and September 2012, in USB drives, memory cards and Apple products. HMRC denied Intekx's input tax for periods 07/09 to 10/12 on the ground of knowing participation in MTIC fraud. It denied the input tax for 01/13 to 07/13 for want of records substantiating the claims. Intekx withdrew its appeals against the 07/09 to 10/12 assessments. HMRC then assessed penalties of £12,833,984.49 under Schedule 24 to the Finance Act 2007. On 17 March 2015 it issued 17 personal liability notices transferring 100% of those penalties to Mr Hackett under paragraph 19 of Schedule 24 to the Finance Act 2007, and it upheld them on review. At a preliminary stage, Judge Berner held that the civil standard of proof applied and that it would be an abuse of process to relitigate the Intekx 2014 findings. The Upper Tribunal dismissed Mr Hackett's appeal against that decision and remitted the substantive appeal. Mr Hackett's applications to adjourn the final hearing on medical grounds were refused. He took part remotely on the first sitting day and then withdrew.